How are emerging markets coping?
There are differences between emerging market countries on their ability to weather the impact of higher interest rates. Indonesia and Malaysia have suffered due to the slump in commodities, which have hurt export revenues.
The Indonesian rupiah and the Malaysian ringgit fell sharply in the summer, although they have recovered a little since. Still, the risk of renewed currency weakness amid anticipated dollar strength limits the possibility of additional stimulus somewhat.
The Philippines and India tend to depend more on domestic consumption so have fared better. Lower crude oil prices have helped narrow the current account deficit in India while inflation has also cooled, giving the central bank elbow room to cut interest rates.
The country has also upstaged China as the world's fastest growing major economy though the construction sector has slowed and bad debts in the banking system have risen.
In China, the stuttering economy and capital outflows have dragged the yuan down against the U.S. dollar to the lowest in more than four years. The People's Bank of China has intervened in the currency market to avert bigger falls.